IIPR - Want $2000 in Annual Passive Income? Buy $93 of This Stock Per Week for 5 Years
Innovative Industrial Properties (NYSE: IIPR) is a smart passive income stock thanks to its ever-growing empire of marijuana cultivation real estate. But as all investors know, building up a significant amount of dividend income typically requires a lot of money or a lot of patience, if not both.
In fact, with a relatively small weekly commitment, you could build up a pretty decent haul of dividends annually, and it wouldn't even take you that long to do so in the grand scheme of things. Before we go over the details of how to do that, let's start by taking a minute to appreciate why this real estate investment trust (REIT) is such a passive income machine in the first place.
Innovative Industrial has a strong business model based on sale-leaseback transactions that enables it to pay a juicy dividend while growing its revenue, earnings, and its base of assets under management. In short, it exchanges lump sums of cash for cannabis cultivation, manufacturing, distribution, or retail facilities, which it purchases from marijuana businesses that need capital for growth. After the trade, the capital-hungry companies become rent-paying tenants for the duration of their lease; most of Innovative Industrial's leases are for terms of 15 to 20 years.
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Want $2,000 in Annual Passive Income? Buy $93 of This Stock Per Week for 5 Years